Key Benefits of Sentiment Analysis for Businesses

The benefits of sentiment analysis and it’s use by business owners help them gain an advantage over their competitors.

Terms like ‘opinion mining’ and ‘text identification’ often describe the meaning of sentiment analysis as a suitable method used by marketers to recognize customers’ preferences.

The data gathered from customers’ responses like tweets, comments, feedback and any writing that’s related to products or services are studied and this process is called sentiment analysis.

Marketers and organizations are pursuing this process to stay relevant in the competitive field and to find a suitable way to advance their business.

As social media plays a significant role in almost every human’s life, most organizations are using it as the communication medium with their customers or other companies.

While companies use social media as a tool to interact with their customers, the comments and feedback derived from the customers are analyzed and used by companies as their guide to improving their products and services.

Let’s look into the benefits of sentiment analysis, the types, and finally what to use sentiment analysis on, further down in this article.

Key Benefits of Sentiment Analysis 

Listed below are some of the benefits of sentiment analysis and a short explanation of how sentiment analysis helps your company.

1. Improve Customer Service

One of the benefits of sentiment analysis is being able to track the key messages from customers’ opinions and thoughts about a brand.

This helps the customer service department to be aware of any related issues or problems.

As the method allows the organizations to understand their customers better, sentiment analysis provides a clear picture of the problems and persuades the organisation to look for a solution.

Plus, having a quick sentiment analysis detection over customer unfavorable remarks, the organisation can act swiftly by investigating the root cause and provide the customer service department an effective resolution. Nothing beats a prompt response in addressing an issue from the company itself.

2. Develop Quality Products

Making the customers happy and remain loyal to a brand is a taxing job. Hence another of the benefits of sentiment analysis make the whole process easier and at the same time provides opportunities for improvement.

This allows the marketing team to research the current trends and customers’ preferences better.

The responses from the customers can be used as the guideline to improve the service quality, better future product development, reduce customer churn or improve how the product is presented. 

“Whoever understands the customer best, wins”

Mike Gospe

3. Discovering New Marketing Strategies

With more data and information gathered through sentiment analysis, the organizations could develop an effective marketing strategy.

The outcome from the strategies can be measured from the customers’ positive or negative key messages.

By observing the customers’ conversations on their social media and detect the specific key messages related to your brand, specific marketing campaigns can be designed for the target consumers. 

4. Improve Media Perceptions

Another benefits of Sentiment Analysis is to be able to track the understanding of the journalists, writers, columnists, market analysts, media researchers or independent contributors towards the company, be it the product, service, company values, human resources etc.

This is crucial as any misinterpretation or negative connotation can lead to negative key messages which forms an undesirable perception.

Knowing who writes what historically and what are their interest and how critical on certain subjects helps the media relations department to package a fitting and appealing content for them.

5. Increasing Sales Revenue

Sentiment analysis captures the impressions and moods of the customers and this is definitely a great way to improve sales profits!

As negative key messages are found and the marketing team works their magic to solve the problems and optimize the product quality, organizations can estimate a higher monetary return.

This is achieved by the management’s use of sentiment analysis for improving the products and services. In addition, customers feel that they are being heard and their needs are taken care of, thus improving a company’s image as well.

6. Improve Crises Management

Frequent monitoring of the customers’ responses or opinions towards a brand would help to identify any issues quickly; one of the benefits of sentiment analysis.

Avoiding any escalating complaint is one of the purposes of sentiment analysis, which allows for efficient and swift crisis management to be implemented.

Timely preventive actions are very important as it helps to eradicate online communication crisis which could easily spread all over the Internet in minutes.

As sentiment analysis allows organizations to keep a close eye on any negative thread or comments online, potential issues or crises can be dealt with early before escalation.

As interesting as these benefits of sentiment analyses are, companies should first understand the types of sentiment analysis and where to apply them.

Types of Sentiment Analysis 

1. Standard Sentiment Analysis  

Key Benefits of Sentiment Analysis for Businesses - Standard Sentiment Analysis

The most popular used type is the standard sentiment analysis as it recognizes and studies the expression and the tone of opinions about a product or service.

It helps to categorize the subjective details whether they are positive, negative or neutral data. For instance:

  1. ‘I love how Product AA air-fry thaws the frozen food in a short time!’ – Positive
  2. ‘I still need time to operate Product AA according to its various functions’ – Neutral
  3. ‘Too many buttons and functions on Product AA, so confusing!’ – Negative 

2. Fine-Grained Sentiment Analysis

This is another type that focuses on recognizing people’s opinions but it provides a more precise output. The feedback gathered is ranked to 5-star ratings, which are:

  • Very positive
  • Positive
  • Neutral
  • Negative
  • Very negative

The data is usually mapped to 5 stars as ‘Very Positive’ to 1 star as ‘Very Negative’. Besides the mentioned common terms, other traits like feelings can also be used to measure whether the responses are positive or negative.

Words like ‘anger’, ‘sadness’ and ‘worries’ are associated with negative sentiment, while words like ‘happiness’, ‘love’ and ‘enthusiasm’ are linked with the positive sentiments.

3. Emotion Detection

Key Benefits of Sentiment Analysis for Businesses - Emotion Detection

This sentiment type finds the customers’ feelings within the text or responses provided.

The words or feedbacks are observed and associated with different feelings such as happiness, frustration, anger, sadness, and many more.

The only downside is the confusion faced by the emotion detection system that recognizes the varied lexicons (list of words or emotions) used by the customers to express their opinions.

The example below describes how customers used the same word to portray both positive and negative perceptions of the product.

The word ‘kill’ can be used in both positive and negative remarks; ‘the service here is killing me!’ and ‘the service is killing it!’. 

4. Aspect-Based Sentiment Analysis  

Product reviews are often considered a good way to understand the customers’ thoughts about a product or service. By discussing the specific detail or aspect of the product, the composed opinions provide useful insights to the companies. For example: 

‘The sound coming from the speaker of Product BB is too low!’

The expression sounds negative as it describes the characteristic of the product that is used for further improvement purposes.

5. Intent Analysis

Intent analysis tries to understand the action underlying in the reviews or opinions given by the customers. This sentiment analysis type provides opportunities to resolve customers’ complaints or issues related to the product or service. For example:

‘I can’t take it anymore! The XX application kept closing whenever I log in. Can you help?’

Using sentiment analysis, it is very easy to detect customers’ complaints and resolve problems. Now, let’s take a look at what sentiment analysis should be used for.

What to Use Sentiment Analysis For

The use of sentiment analysis has been a great help for organizations to monitor their brand reputation and get stay alert on any issues to arise.

This is achieved by analyzing the reviews and tone embedded in the text that can be retrieved from different platforms. 

Social Media Monitoring

Living in the modern era with more 500,000 Tweets and 510,000 Facebook comments written daily, social media monitoring is the most commonly used method by companies.

The data shared online is the massive information mine containing people’s opinions, preferences, and emotions in almost every aspect of their life.

Whether to buy the new smartphone model or deciding which online store to be visited, the details in the online conversation provide additional insight for the business.

According to statistics, 46% of people have opted to use social media to extend their complaints to the intended company. Thanks to sentiment analysis, the complaints received can be identified, categorized according to the seriousness of the complaint and resolved in an arranged manner.

Few organizations have used sentiment analysis models in their social media page whereby the comments are instantly tagged as positive, negative or neutral.

The example can be seen below:

Key Benefits of Sentiment Analysis for Businesses - Social Media Monitoring

Brand Monitoring

Online discussions in blogs, the comments section of an online store or news websites are some of the sources that can be used to gather and process the people’s opinions of a certain item or service.

Reviews from other customers and a 4-star rated item have used the guides for the people to proceed with the buying process.

As sentiment analysis has grown to be the popular option to observe the trends and buying habits among the consumers, few brand monitoring tools emerged to offer such service to the needed organizations.

Brand24 is a fast-growing application in brand monitoring that conducts the whole process for the business owners in real-time.

By providing information on whether your product being complimented or criticized, brand monitoring helps to categorize the positive or negative mentions of your products online.

Thus making it easier for the organizations to plan their remedial actions. Here is the example of the summary/analysis tabs of Brand 24 as the positive, negative and neutral mentions:

Key Benefits of Sentiment Analysis for Businesses - Brand Monitoring

Customer Support

Organizations around the globe are catching up with the fact that to stay competitive in the challenging market is to utilize business data analytics.

Improving customer service operations is crucial as it provides a good experience to the customer and they will stay loyal.

Support conversations and constructive feedback on the forum discussions are few tools used in sentiment analysis in detecting the tone of the customers’ text.

Any business put high dependence on their customers’ satisfaction level thus the details extracted from the analysis deemed to be valuable for suggestions and solutions to any related issues.

At the same time, the sentiment analysis also helps to identify the customers’ experience with the customer support department and decide whether their issues have been resolved successfully or not.

Here is an example of a Tweet complaining about Airbnb customer support department:

Key Benefits of Sentiment Analysis for Businesses - Customer Support

Customer Feedback

Key Benefits of Sentiment Analysis for Businesses - Customer Feedback

Every piece of customer feedback is important in determining the status of the brand and how people think about the brand.

As customer’s feedbacks varied from ‘very happy’ to ‘least happy’, sentiment analysis process the responses and categorize them to their groups for the organizations’ convenience.

Most Net Promoter Score (NPS) survey consist of two parts; first is asking the customers to rate the business according to 0 – 10 scores and the second part is asking them to leave reasons/comments in the open-ended section.

With the enormous number of responses gathered, sentiment analysis allows the feedbacks categorizing process implemented smoothly and the results can be obtained easily. 

This analysis tool helps to classify the different customers into three types; promoters, passives, and detractors. The sentiments measured according to the products’ specific criteria enable the marketeers to study the customers’ trends and preferred brand.

Market Research

Using sentiment analysis in conducting market research is a must since the traditional methods era.

While the previous tools like comment cards, printed surveys, interviews and focus groups adopted in identifying customers’ preferences and feedbacks towards a brand, collecting online sentiments in a systematic order also provide the same outcome.

The sentiment analysis performed while classifying the customers’ responses enable the organizations to understand their thoughts or feelings towards the brand. 

Takeaways

The benefits of sentiment analysis are obvious, and are a great help in assisting organizations to understand what their customers think and feel about their brand.

Being a smarter support tool, sentiment analysis offers valuable insights for the marketeers to research and produce strategical solutions that solve the issues or crises.

With this being said, there is no need for more guessing or making assumptions with zero data as clear analysis of customers’ opinions and reviews are readily available for every company.

Still finding it difficult to digest the benefits of sentiment analysis and it’s other aspects? Try using enquiring about this sentiment analysis tool, and we’ll get back to you!